| Segment Reporting |
11.Segment Reporting Our reportable segments are strategic business units managed separately based on different business strategies, services and products. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. “OIBDA,” defined as “Operating income (loss)” plus “Depreciation and amortization,” is the primary measure used by our CODM to evaluate segment operating performance. The CODM regularly reviews budget-to-actual variances of OIBDA when evaluating segment performance and allocating resources to each segment. We currently operate three primary business segments: (1) Pay-TV; (2) Wireless; and (3) Broadband and Satellite Services. See Note 1 for further information. Our Pay-TV segment revenue is primarily derived from Pay-TV subscriber revenue. Our Wireless segment revenue is primarily derived from Wireless subscriber revenue and selling wireless devices to subscribers. Our Broadband and Satellite Services segment revenue is primarily derived from Broadband subscriber revenue, broadband services revenue and communications equipment sales and leases. All other and eliminations primarily include intersegment eliminations related to intercompany revenue and the related expense, which are eliminated in consolidation. The CODM is not regularly provided assets on a segment basis; therefore, such information is not presented. The revenue, expense, operating income (loss) and OIBDA by segment were as follows: The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts presented. | | | | | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Eliminations | | Consolidated Total | | | | (In thousands) | For the Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Revenue from external customers: | | | | | | | | | | | | | | | | Service revenue | | $ | 2,444,851 | | $ | 823,721 | | $ | 271,535 | | $ | — | | $ | 3,540,107 | Equipment sales and other revenue | | | 13,638 | | | 110,647 | | | 60,567 | | | — | | | 184,852 | Intersegment revenue | | | 3,760 | | | 263 | | | 7,678 | | | (11,701) | | | — | Total revenue | | | 2,462,249 | | | 934,631 | | | 339,780 | | | (11,701) | | | 3,724,959 | | | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | | | | Cost of services: | | | | | | | | | | | | | | | | Programming | | | 1,179,987 | | | — | | | — | | | — | | | 1,179,987 | Connectivity services (1) | | | 52,652 | | | 636,680 | | | 50,180 | | | (2,315) | | | 737,197 | Other (2) | | | 316,332 | | | 164,501 | | | 65,052 | | | (1,438) | | | 544,447 | Total cost of services | | | 1,548,971 | | | 801,181 | | | 115,232 | | | (3,753) | | | 2,461,631 | Cost of sales - equipment and other | | | 9,446 | | | 282,045 | | | 63,551 | | | (855) | | | 354,187 | Selling, general and administrative expenses: | | | | | | | | | | | | | | | | Subscriber acquisition costs | | | 87,606 | | | 204,810 | | | 44,924 | | | (1,389) | | | 335,951 | Selling, general and administrative expenses | | | 152,849 | | | 98,575 | | | 48,374 | | | (6,255) | | | 293,543 | Total selling, general and administrative expenses | | | 240,455 | | | 303,385 | | | 93,298 | | | (7,644) | | | 629,494 | | | | | | | | | | | | | | | | | OIBDA (3) | | | 663,377 | | | (451,980) | | | 67,699 | | | 551 | | | 279,647 | | | | | | | | | | | | | | | | | Depreciation and amortization | | | 67,825 | | | 320,968 | | | 104,437 | | | (175) | | | 493,055 | Total costs and expenses | | | 1,866,697 | | | 1,707,579 | | | 376,518 | | | (12,427) | | | 3,938,367 | | | | | | | | | | | | | | | | | Operating income (loss) | | $ | 595,552 | | $ | (772,948) | | $ | (36,738) | | $ | 726 | | | (213,408) | | | | | | | | | | | | | | | | | Unallocated Amounts | | | | | | | | | | | | | | | | Interest income | | | | | | | | | | | | | | | 65,369 | Interest expense, net of amounts capitalized | | | | | | | | | | | | | | | (279,232) | Other, net | | | | | | | | | | | | | | | 35,137 | Income (loss) before income taxes | | | | | | | | | | | | | | $ | (392,134) |
| (1) | “Connectivity services” is the cost to deliver our services and products to customers, which includes, among other things, network, transport and data, cloud-based service, satellite and transmission, and other related costs. |
| (2) | “Other” primarily consists of variable costs including call center, manufacturing, dealer incentive, bad debt, billing and other variable costs, as well as costs to retain our subscribers. |
| (3) | OIBDA is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors. |
| | | | | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Eliminations | | Consolidated Total | | | | (In thousands) | For the Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Revenue from external customers: | | | | | | | | | | | | | | | | Service revenue | | $ | 2,656,580 | | $ | 785,140 | | $ | 300,366 | | $ | — | | $ | 3,742,086 | Equipment sales and other revenue | | | 17,379 | | | 107,452 | | | 85,834 | | | — | | | 210,665 | Intersegment revenue | | | 2,325 | | | 136 | | | 7,811 | | | (10,272) | | | — | Total revenue | | | 2,676,284 | | | 892,728 | | | 394,011 | | | (10,272) | | | 3,952,751 | | | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | | | | Cost of services: | | | | | | | | | | | | | | | | Programming | | | 1,259,042 | | | — | | | — | | | — | | | 1,259,042 | Connectivity services | | | 54,504 | | | 619,855 | | | 52,760 | | | (2,144) | | | 724,975 | Other | | | 325,137 | | | 125,649 | | | 73,490 | | | (815) | | | 523,461 | Total cost of services | | | 1,638,683 | | | 745,504 | | | 126,250 | | | (2,959) | | | 2,507,478 | Cost of sales - equipment and other | | | 17,837 | | | 312,983 | | | 78,409 | | | (1,136) | | | 408,093 | Selling, general and administrative expenses: | | | | | | | | | | | | | | | | Subscriber acquisition costs | | | 102,635 | | | 147,308 | | | 48,690 | | | (583) | | | 298,050 | Selling, general and administrative expenses | | | 164,128 | | | 81,372 | | | 58,270 | | | (6,796) | | | 296,974 | Total selling, general and administrative expenses | | | 266,763 | | | 228,680 | | | 106,960 | | | (7,379) | | | 595,024 | | | | | | | | | | | | | | | | | OIBDA | | | 753,001 | | | (394,439) | | | 82,392 | | | 1,202 | | | 442,156 | | | | | | | | | | | | | | | | | Depreciation and amortization | | | 85,249 | | | 305,863 | | | 116,978 | | | (565) | | | 507,525 | Total costs and expenses | | | 2,008,532 | | | 1,593,030 | | | 428,597 | | | (12,039) | | | 4,018,120 | | | | | | | | | | | | | | | | | Operating income (loss) | | $ | 667,752 | | $ | (700,302) | | $ | (34,586) | | $ | 1,767 | | | (65,369) | | | | | | | | | | | | | | | | | Unallocated Amounts | | | | | | | | | | | | | | | | Interest income | | | | | | | | | | | | | | | 13,929 | Interest expense, net of amounts capitalized | | | | | | | | | | | | | | | (81,166) | Other, net | | | | | | | | | | | | | | | (91,498) | Income (loss) before income taxes | | | | | | | | | | | | | | $ | (224,104) |
| | | | | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Eliminations | | Consolidated Total | | | | (In thousands) | For the Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Revenue from external customers: | | | | | | | | | | | | | | | | Service revenue | | $ | 4,966,403 | | $ | 1,633,328 | | $ | 546,532 | | $ | — | | $ | 7,146,263 | Equipment sales and other revenue | | | 26,593 | | | 272,771 | | | 149,090 | | | — | | | 448,454 | Intersegment revenue | | | 7,980 | | | 1,307 | | | 14,816 | | | (24,103) | | | — | Total revenue | | | 5,000,976 | | | 1,907,406 | | | 710,438 | | | (24,103) | | | 7,594,717 | | | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | | | | Cost of services: | | | | | | | | | | | | | | | | Programming | | | 2,396,409 | | | — | | | — | | | — | | | 2,396,409 | Connectivity services | | | 106,786 | | | 1,258,748 | | | 99,339 | | | (4,498) | | | 1,460,375 | Other | | | 602,412 | | | 308,633 | | | 129,018 | | | (3,018) | | | 1,037,045 | Total cost of services | | | 3,105,607 | | | 1,567,381 | | | 228,357 | | | (7,516) | | | 4,893,829 | Cost of sales - equipment and other | | | 19,118 | | | 631,290 | | | 145,285 | | | (1,998) | | | 793,695 | Selling, general and administrative expenses: | | | | | | | | | | | | | | | | Subscriber acquisition costs | | | 174,119 | | | 395,295 | | | 91,356 | | | (2,278) | | | 658,492 | Selling, general and administrative expenses | | | 308,882 | | | 180,484 | | | 92,038 | | | (12,551) | | | 568,853 | Total selling, general and administrative expenses | | | 483,001 | | | 575,779 | | | 183,394 | | | (14,829) | | | 1,227,345 | | | | | | | | | | | | | | | | | OIBDA | | | 1,393,250 | | | (867,044) | | | 153,402 | | | 240 | | | 679,848 | | | | | | | | | | | | | | | | | Depreciation and amortization | | | 144,268 | | | 628,206 | | | 209,335 | | | (421) | | | 981,388 | Total costs and expenses | | | 3,751,994 | | | 3,402,656 | | | 766,371 | | | (24,764) | | | 7,896,257 | | | | | | | | | | | | | | | | | Operating income (loss) | | $ | 1,248,982 | | $ | (1,495,250) | | $ | (55,933) | | $ | 661 | | | (301,540) | | | | | | | | | | | | | | | | | Unallocated Amounts | | | | | | | | | | | | | | | | Interest income | | | | | | | | | | | | | | | 130,898 | Interest expense, net of amounts capitalized | | | | | | | | | | | | | | | (565,287) | Other, net | | | | | | | | | | | | | | | 76,527 | Income (loss) before income taxes | | | | | | | | | | | | | | $ | (659,402) |
| | | | | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Eliminations | | Consolidated Total | | | | (In thousands) | For the Six Months Ended June 30, 2024 | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Revenue from external customers: | | | | | | | | | | | | | | | | Service revenue | | $ | 5,356,105 | | $ | 1,589,401 | | $ | 616,249 | | $ | — | | $ | 7,561,755 | Equipment sales and other revenue | | | 42,240 | | | 217,003 | | | 146,596 | | | — | | | 405,839 | Intersegment revenue | | | 4,517 | | | 330 | | | 13,752 | | | (18,599) | | | — | Total revenue | | | 5,402,862 | | | 1,806,734 | | | 776,597 | | | (18,599) | | | 7,967,594 | | | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | | | | Cost of services: | | | | | | | | | | | | | | | | Programming | | | 2,543,872 | | | — | | | — | | | — | | | 2,543,872 | Connectivity services | | | 111,701 | | | 1,261,497 | | | 102,118 | | | (2,957) | | | 1,472,359 | Other | | | 647,555 | | | 248,115 | | | 154,312 | | | (1,553) | | | 1,048,429 | Total cost of services | | | 3,303,128 | | | 1,509,612 | | | 256,430 | | | (4,510) | | | 5,064,660 | Cost of sales - equipment and other | | | 34,829 | | | 602,525 | | | 135,043 | | | (1,221) | | | 771,176 | Selling, general and administrative expenses: | | | | | | | | | | | | | | | | Subscriber acquisition costs | | | 223,388 | | | 289,046 | | | 102,124 | | | (1,359) | | | 613,199 | Selling, general and administrative expenses | | | 333,006 | | | 163,486 | | | 121,321 | | | (11,566) | | | 606,247 | Total selling, general and administrative expenses | | | 556,394 | | | 452,532 | | | 223,445 | | | (12,925) | | | 1,219,446 | | | | | | | | | | | | | | | | | OIBDA | | | 1,508,511 | | | (757,935) | | | 161,679 | | | 57 | | | 912,312 | | | | | | | | | | | | | | | | | Depreciation and amortization | | | 170,651 | | | 587,535 | | | 235,819 | | | (1,080) | | | 992,925 | Total costs and expenses | | | 4,065,002 | | | 3,152,204 | | | 850,737 | | | (19,736) | | | 8,048,207 | | | | | | | | | | | | | | | | | Operating income (loss) | | $ | 1,337,860 | | $ | (1,345,470) | | $ | (74,140) | | $ | 1,137 | | | (80,613) | | | | | | | | | | | | | | | | | Unallocated Amounts | | | | | | | | | | | | | | | | Interest income | | | | | | | | | | | | | | | 44,391 | Interest expense, net of amounts capitalized | | | | | | | | | | | | | | | (180,574) | Other, net | | | | | | | | | | | | | | | (117,608) | Income (loss) before income taxes | | | | | | | | | | | | | | $ | (334,404) |
The purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) by segment were as follows: | | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Total | | | | (In thousands) | For the Three Months Ended June 30, 2025 | | | | | | | | | | | | | Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | | $ | 78,580 | | $ | 625,203 | | $ | 43,118 | | $ | 746,901 | | | | | | | | | | | | | | For the Three Months Ended June 30, 2024 | | | | | | | | | | | | | Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | | $ | 54,006 | | $ | 560,468 | | $ | 56,559 | | $ | 671,033 |
| | | | | | | | | | | | | | | Pay-TV | | Wireless | | Broadband and Satellite Services | | Total | | | | (In thousands) | For the Six Months Ended June 30, 2025 | | | | | | | | | | | | | Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | | $ | 140,968 | | $ | 909,196 | | $ | 75,221 | | $ | 1,125,385 | | | | | | | | | | | | | | For the Six Months Ended June 30, 2024 | | | | | | | | | | | | | Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | | $ | 111,918 | | $ | 1,109,641 | | $ | 127,170 | | $ | 1,348,729 |
The revenue from external customers disaggregated by major revenue source was as follows: | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | | June 30, | | June 30, | Category: | | 2025 | | 2024 | | 2025 | | 2024 | | | | (In thousands) | Pay-TV subscriber and related revenue | | $ | 2,446,844 | | $ | 2,658,381 | | $ | 4,971,196 | | $ | 5,359,560 | Wireless services and related revenue | | | 823,722 | | | 785,135 | | | 1,633,329 | | | 1,589,401 | Broadband and satellite services and other revenue | | | 273,441 | | | 302,527 | | | 550,385 | | | 619,647 | Pay-TV equipment sales and other revenue | | | 15,405 | | | 17,903 | | | 29,780 | | | 43,302 | Wireless equipment sales and other revenue | | | 110,909 | | | 107,593 | | | 274,077 | | | 217,333 | Broadband equipment and other revenue | | | 66,339 | | | 91,484 | | | 160,053 | | | 156,950 | Eliminations | | | (11,701) | | | (10,272) | | | (24,103) | | | (18,599) | Total | | $ | 3,724,959 | | $ | 3,952,751 | | $ | 7,594,717 | | $ | 7,967,594 |
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